Ken Lund
Simultaneously, the Fed has downgraded its projection for US GDP growth for 2025 - from 1.7% to 1.4%, and for 2026 - from 1.8% to 1.6%. The prediction for 2027 remains at 1.8%.
The central projection among Fed officials is for the key interest rate to decrease to 3.9% by the conclusion of 2025, reflecting a total reduction of 50 basis points this year. The policymakers of the central bank provided a similar prediction in March.
The projected rate for the close of 2026 is currently 3.6% (down from 3.4% in March) and 3.4% (compared to 3.1%) for the end of 2027.
The dot plot from the forecasts issued after the June meeting - a graph depicting the personal interest rate predictions of Federal Reserve board members and bank presidents - indicates that 10 out of 19 policymakers anticipate a reduction of at least 50 basis points in 2025, bringing the range to 3.75% to 4%, with two believing a 75 basis point decrease could occur.
Seven members of the Federal Reserve leadership anticipate that the rate will stay within the current range of 4.25% to 4.5% until the conclusion of 2025.
source: bloomberg.com
The central projection among Fed officials is for the key interest rate to decrease to 3.9% by the conclusion of 2025, reflecting a total reduction of 50 basis points this year. The policymakers of the central bank provided a similar prediction in March.
The projected rate for the close of 2026 is currently 3.6% (down from 3.4% in March) and 3.4% (compared to 3.1%) for the end of 2027.
The dot plot from the forecasts issued after the June meeting - a graph depicting the personal interest rate predictions of Federal Reserve board members and bank presidents - indicates that 10 out of 19 policymakers anticipate a reduction of at least 50 basis points in 2025, bringing the range to 3.75% to 4%, with two believing a 75 basis point decrease could occur.
Seven members of the Federal Reserve leadership anticipate that the rate will stay within the current range of 4.25% to 4.5% until the conclusion of 2025.
source: bloomberg.com